Atlantic Union Bankshares Reports Financial Growth Driven by Sandy Spring Acquisition in Q3 2025

Atlantic Union Bankshares Corporation reported significant financial growth in its third quarter of 2025, driven largely by its recent acquisition of Sandy Spring Bancorp. The company recorded net income available to common shareholders of $89.2 million, translating to earnings per share (EPS) of $0.63, compared to $73.4 million and $0.82 EPS in the same quarter of 2024. For the first nine months of 2025, net income available to common shareholders was $152.8 million, with basic and diluted EPS of $1.23 and $1.22, respectively, reflecting a slight increase from $142.4 million and $1.68 EPS in the prior year.

Total assets surged to $37.1 billion as of September 30, 2025, marking a $12.5 billion increase from December 31, 2024. This growth was primarily attributed to the Sandy Spring acquisition, which added approximately $8.9 billion in loans held for investment (LHFI), bringing the total to $27.4 billion. The company also reported total deposits of $30.7 billion, an increase of $10.3 billion, with noninterest-bearing deposits comprising 23.2% of total deposits, up from 21.0% at the end of 2024.

The acquisition also impacted the company’s operational metrics, with net interest income rising to $319.2 million for the third quarter, up from $182.9 million a year earlier. The net interest margin improved to 3.77%, a 46 basis point increase year-over-year, driven by a lower cost of funds and higher loan accretion income related to the acquisition. Noninterest income also saw a substantial increase, reaching $51.8 million, a 50.9% rise compared to the previous year, largely due to higher fiduciary and asset management fees.

However, the company faced challenges in asset quality, with nonaccrual loans increasing to $131.2 million, up from $58.0 million at the end of 2024. The allowance for loan and lease losses (ALLL) rose to $293.0 million, reflecting the initial provision recorded in connection with the Sandy Spring acquisition. The company reported net charge-offs of $38.6 million for the third quarter, a significant increase from $666,000 in the same period last year, primarily due to the charge-off of two commercial and industrial loans.

Looking ahead, Atlantic Union Bankshares remains focused on integrating Sandy Spring's operations and leveraging the expanded customer base to drive future growth. The company continues to monitor economic conditions and interest rate fluctuations, which may impact its financial performance. The management expressed confidence in its liquidity position, with total liquid assets amounting to $12.4 billion, representing 33.4% of total assets, ensuring it can meet customer needs and maintain financial flexibility.